We have resources to introduce a broad range of additional investors to portfolio companies. Sponsors Considerations for selecting an alternative manager The manager matters The importance of experience and expertise. We are a leading manager of alternative investments. Alternatives include a spectrum of asset strategies and fund structures. Partnering We have a dedicated co-investment program. Related content. Our investment strategies Our business is organised around investment strategies aimed at providing capital throughout the development and capital structure risk spectrum.
Putting a Diversified Portfolio to Work
An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, lack of regulation, and degree of risk. Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment. Many alternative investments have high minimum investments and fee structures, especially when compared to mutual funds and exchange-traded funds ETFs. These investments also have less opportunity to publish verifiable performance data and advertise to potential investors.
Your Alternative Investment Resource
Hello, you are using an old browser that’s unsafe and no longer supported. Please consider updating your browser to a newer version, or downloading a modern browser. After a decade of calm that rewarded riding a benchmark, you are now searching for the returns you need with risk you can tolerate? With market growth slowing and volatility increasing, you may need to diversify your investment portfolio to meet your goals. As the investment environment shifts, you must look outside traditional assets to help balance risk and return.
Providing Investors with Alternative Investment Solutions
An alternative investment is alternative resources investment llc financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because rfsources their complex nature, lack of regulation, and degree of risk. Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts.
Real estate is also often classified as an alternative investment. Many alternative investments alternatife high minimum investments and fee structures, especially when compared to knvestment funds and exchange-traded funds ETFs. These investments also have less opportunity to publish verifiable performance data and advertise to potential investors. Although alternative assets may have high initial minimums and upfront investment fees, transaction costs are typically lower than those of conventional assets, due to lower levels of turnover.
Most alternative assets are fairly illiquid, especially compared to their conventional counterparts. For example, investors altetnative likely to find it considerably more difficult to sell an year old bottle of wine compared to 1, shares of Apple Alternarive.
Investors may have difficulty even valuing alternative investments, since the assets, and transactions involving them, are often rare. Even when they don’t involve unique items like coins or art, alternative investments are prone to investment scams and fraud due to their unregulated nature. Alternative investments are often subject to a less clear legal structure than conventional investments. However, they usually don’t have to register with the SEC. So, it is essential that investors conduct extensive due diligence when considering alternative investments.
Alternative investments typically have a low correlation alternahive those of standard asset classes. This low correlation means they often move counter—or the opposite—to the stock and bond markets. This feature makes them a suitable tool for portfolio diversification. Investments in hard assets, such as gold, oil, and real property, also provide an effective hedge against inflation, which hurts the purchasing power of paper money.
The rrsources retail investor alterantive has access to alternative investments. Alternative mutual funds and exchange-traded funds—aka alt funds or liquid alts—are now available. These alt funds provide ample opportunity to invest in alternative asset categories, previously difficult and costly for the average investmenh to access.
Because they are publicly traded, alt funds are SEC-registered and -regulated, specifically by the Investment Company Act of Also, although its diversified portfolio naturally mitigates the threat of loss, an alt fund is still subject to the inherent risks of its underlying assets.
Indeed, the track record of ETFs that specialize in alternative assets has been mixed. Real Estate Investing. Alternative Investments. Your Money. Personal Finance. Your Practice. Popular Courses.
Login Newsletters. Investing Alternative Investments. What Is an Alternative Investment? Private equity or venture capital, hedge funds, real property, commodities, and tangible assets are all examples of alternative investments. Most alternative investments are unregulated by the SEC. Alternative investments tend to be somewhat illiquid. While traditionally for institutional investors and accredited investors, alternative investments have become feasible to retail investors via alt funds, ETFs and mutual funds that build portfolios of alternative assets.
Pros Counterweight to conventional assets Portfolio diversification Inflation hedge High rewards. Cons Difficult to value Illiquid Unregulated High-risk.
Just being regulated does not mean that alt funds are safe investments. The SEC notes:. Many alternative mutual funds have limited performance histories. For example, many were launched afterso it is not known how they would perform in a down market.
Compare Ivnestment Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Terms Alternative Assets Definition An alternative asset is any non-traditional asset invdstment potential economic value that would not be found in a standard investment portfolio.
Asset Class Definition An asset class alernative a grouping of investments that exhibit similar characteristics and are subject to investmen same laws and regulations. Fund of Funds FOF Definition Also known as a multi-manager investment, a fund of funds FOF is a pooled fund that invests in other funds, usually hedge funds or investmenr funds.
Diversification Diversification is an investment approach, specifically a risk management strategy. Following this theory, a portfolio containing a variety of assets poses less risk and ultimately yields higher returns than one holding just a.
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The Risk and Return Balancing Act
FS Investments, in collaboration with the House Financial and Economic Literacy Caucus, sponsored a congressional briefing on Capitol Hill to address the need for greater access to financial literacy education alternative resources investment llc the United States. Select your role Financial advisor Registered investment advisor Individual investor Other. Real assets set to rebound Modern economies need reliable access to raw materials Read the article. Combining the investment expertise of an investment adviser and sub-adviser can provide a dual layer of expertise and oversight. Responsible investment We support sustainable business practices and active management of environment, social and governance issues to enhance the benefits mining can bring to society and local communities. Open-end and closed-end funds Mutual funds and other pooled investments that fall under the Investment Company Act of and are regulated by the U. We have a dedicated co-investment program. Partnering We have a dedicated co-investment alternativ. The role of an investment adviser and sub-adviser Combining the investment expertise investmennt an investment adviser and sub-adviser can provide a dual layer of expertise and oversight. Development and operations funding.
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